LOUISVILLE, KY – Sypris Electronics reported first quarter revenue of $6.8 million, down 21.8% year-over-year.

Gross profit for the quarter ended Apr. 4 was $600,000, or 9.5% of revenue, compared to $1.2 million, or 14.1% of revenue, for the same period in 2020.

Shipments were impacted by a customer design change and the timing of material receipts to resolve the design change, as well as lower sales to a commercial communications customer during the quarter.

Orders increased 70% during the first quarter compared to the same period in 2020, driving backlog up 36.3% over the prior-year period and 56.3% sequentially.

Sypris Electronics announced a contract award to manufacture and test electronic power supply modules for a mission-critical, long-range, precision-guided, anti-ship missile system, with production to begin during 2021. A contract award was also announced to manufacture and test electronic assemblies for a government spacecraft program, with production to begin during 2021.

“We are clearly now at the inflection point for Sypris,” said Jeffrey T. Gill, president and CEO, Sypris Solutions. “The significant growth in orders and the underlying strength of our markets is expected to have a material impact on the financial results of the company beginning in the second quarter of 2021. Backlog is up 56% sequentially for Sypris Electronics, while the OEM backlog of Class 8 commercial vehicles is up 160% since August.

“Customer orders for Sypris Electronics increased 70% over the prior-year period, with deliveries now scheduled well into 2023. Shipments were impacted during the first quarter by late material receipts and a delay in customer releases; however, both issues have since been resolved. We expect the first quarter shortfall to be recovered during the balance of the year, combining with recent contract wins to provide meaningful sequential growth in the top line going forward.

“Our customer base and the markets we serve are considerably more diversified than at any point in our recent history. As an essential business, we have a responsibility to ensure that our defense, communications, energy, and transportation sectors remain vibrant. We will continue to monitor developments, act promptly to mitigate risks and take the necessary steps required to ensure deliveries continue to be made to our customers in a timely manner.

“The first quarter marks the turning point for the company. We expect the significant growth in orders and strength of our markets to have a substantial impact on our financial results beginning in the second quarter, with a strong increase in revenue and income for the period and continuing going forward.”

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